Amortization Calculator
Generate a full amortization schedule showing how each payment splits between principal and interest.
Inputs
Monthly Payment
$1,498.88
Total Interest
$289,595
Total Paid
$539,595
Step by step
Monthly interest rate: Annual rate ÷ 12
6.00% ÷ 12
= 0.5000%
Total payments: 30 yr × 12
= 360 months
Monthly payment: M = P · r / (1 − (1+r)⁻ⁿ)
$250,000 × 0.005000 ÷ (1 − (1 + 0.005000)⁻360)
= $1,498.88
Total paid over the life of the loan
$1,498.88 × 360 months
= $539,595
Total interest: cumulative interest accrued each period
= $289,595
Each month: Interest = Remaining Balance × Monthly Rate; Principal = Payment − Interest.
How it works
Early in the loan most of each payment goes to interest; over time the balance falls so more goes to principal. The schedule shows your remaining balance year by year until payoff.
Formulas
Monthly payment
M = P · r / (1 − (1+r)^−n)
- M
- Monthly payment
- P
- Loan principal
- r
- Monthly interest rate = Annual rate ÷ 12
- n
- Loan term in months = Years × 12
Per-period split
Interest_k = Balance_k × r ; Principal_k = M − Interest_k
- I_k
- Interest portion of payment k
- B_k
- Remaining balance before payment k
- P_k
- Principal portion of payment k
Guides that use this calculator
Estimates only and not financial advice.
Frequently Asked Questions
Why is early interest so high?
Interest is charged on your outstanding balance, which is largest at the start. As the balance shrinks, the interest portion of each fixed payment shrinks too.
How can I pay less interest?
Make extra principal payments, choose a shorter term, or secure a lower rate — each reduces the total interest paid over the life of the loan.